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Consider the following statements.
1. RBI primarily factors in retail inflation while making its bi-monthly monetary policy.
2. A broad-based domestic and global economic recovery can lead to rise in inflation. 
Which of the above statements is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2 
  • d)
    Neither 1 nor 2 S
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements.1.RBI primarily factors in retail in...
RBI primarily factors in retail inflation while making its bi-monthly monetary policy.
A broad-based domestic and global economic recovery should improve aggregate demand, posing an upside risk to inflation. On the other hand, favorable base effect, appreciating rupee and any risk of second or third wave of covid led slowdown, will be a tailwind for CPI inflation.
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Consider the following statements.1.RBI primarily factors in retail inflation while making its bi-monthly monetary policy.2.A broad-based domestic and global economic recovery can lead to rise in inflation.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2 SCorrect answer is option 'C'. Can you explain this answer?
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